Nigeria’s foreign reserves up by $2.35bn in 7 months – Finance Minister

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that Nigeria’s foreign reserves recorded a net inflow of $2.35 billion between January and July, 2024.
Speaking at the Access Bank corporate forum in Lagos Thursday, the minister said the stability of the Naira in the foreign exchange (FX) market led to the increase in foreign reserves.
Edun also said access to foreign exchange has improved.
He said, “We have relative currency stability. And of course, the all-important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates.
“We also have foreign exchange liquidity. The gross reserves are up. There has been a net inflow in the first seven months of this year of about $2.35 billion every month.
“On the fiscal side as well, government revenues are growing and the key to government revenue is not so much that the government has revenue to compete with the private sector.”
The minister, however, said Nigeria’s tax to gross domestic product (GDP) ratio is as low as 10 percent, and that revenue to GDP is also around 15 percent.
Data from the Central Bank of Nigeria (CBN) stated that as of September 12, Nigeria’s external reserves stood at $36.08 billion. The apex bank had, on September 17, said the country’s foreign exchange reserves are at risk due to the petrol subsidy removal and lower crude oil earnings.
The apex bank also said increased external debt servicing obligations could pose risks to the growth of external reserves.